Strategy Q2 Profit Soars to $10B on BTC Gains; $84B 42/42
Strategy reported a record Q2 profit of $10 billion, driven by $13 billion in BTC fair-value gains. Operating income jumped 7,100% year-on-year to $14 billion. The firm holds 628,791 BTC (≈$73.3 billion) and raised its full-year BTC yield target to 30% and Bitcoin gains goal to $20 billion. Strategy announced a $4.2 billion preferred share (STRC) issuance to fund up to 36,128 BTC purchases under its $84 billion “42/42” acquisition plan. Despite strong crypto performance, shares closed at $401.86 and dipped 1.4% after hours. CEO Phong Le called the stock “misunderstood and undervalued” and emphasized Strategy’s low P/E in the S&P 500. Co-founder Michael Saylor and Le are lobbying for clearer U.S. crypto regulation ahead of the Digital Asset Market Clarity Act review.
Bullish
Strategy’s large BTC holdings and aggressive acquisition plan signal sustained buying pressure on Bitcoin, supporting a bullish outlook. In the short term, announcements of record profits and preferred share issuance indicate confidence and potential inflows, which could boost trader sentiment and drive price momentum. The slight after-hours dip in the firm’s stock reflects market caution but does not alter the underlying demand for BTC.
Over the long term, Strategy’s “42/42” plan to acquire $84 billion in BTC, along with raised yield and gains targets, underscores continued accumulation at scale. Combined with calls for clearer U.S. crypto regulation, these factors enhance market transparency and investor confidence. Traders should watch for further BTC purchases under the STRC issuance and regulatory developments, which may reinforce Bitcoin’s upward trajectory.